PERSPECTIVES

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  Is 2022 Really That Confounding?

  Embracing Uncertainty: The Essence of Retailing

  "The mantra of 2022 should really be: No one knows anything," opined a business reporter.* "It’s stunning how little we understand about how the pandemic has changed our lives and our country. It’s not clear whether the U.S. economy is hot or not, or if big cities will be forever scarred." 

  • "The future of our online shopping habits is another unknown. This is not just a nerdy debate. Our collective buying behavior sways trillion-dollar companies, millions of retail jobs and the health of the U.S. economy." 
  
  
  • "The uncertainty about the direction of online shopping is one of the biggest questions facing the tech industry and financial markets right now."

  Well yes, of course. The tech industry and the financial markets do prefer predictability. The uncertainties of retailing always have bedeviled them. And now, with Amazon's recent retrenching, backing off some expansion, their crystal balls have turned cloudy. 

   
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  Patagonia Brings a New Answer

  In the free enterprise system, owners are free to succeed. And free to fail. 
  
  That's why The Retail Owners Institute has defined the #1 responsibility of the Owner as the survival of the business. 
  
  But then, the owner must define "Why?" Why are we doing this, anyway? Why are we working so hard for this business to survive and thrive?

  • There are many good answers. To be the biggest? The fastest growing? A way of life? Something to pass on to the next generation? To create wealth? To support a cause? 
     
  • It all depends on the owner, and what she or he decides. Then, that answer must be communicated: to staff, customers, family, the community, competitors, everyone.  

  That brings us to an event that captured a great deal of attention in the business world last week. 

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  Not the Time to Dawdle

  Heads up. You can take a grim situation and turn it into an advantage. 
  
  Universally, there is a shortage of "good employees." While many will use that as an excuse, it can be a great opportunity for those who seize it.
  
  That's why we paid particular attention to this commentary by Ty West in The Playbook*.

  • "Businesses across a range of industries are struggling with both recruitment and retention, yet surveys and experts continue to show many are unwilling to change their strategies to improve their ability to compete."

  And therein lies the opportunity.

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  Who's Best for the "Never Normal"?

  You've no doubt seen the headlines and the commentary:

  • "Retailers Stumble Adjusting to More Selective Shoppers" *
     
  • "Consumers Uneven Spending Fuels Caution Among Retailers" **

  Consumer spending is up, but not on what was expected, especially those publicly-traded chains that must report quarterly. 

  • "As people watched the prices of food and gas rise, their spending became more selective, leaving retailers with shelves of inventory they couldn’t get rid of." * 
     
  • "Although some consumers are cutting spending on goods, it is being accompanied by increased spending on services," according to Mark Zandi, chief economist of Moody's Analytics. **
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  It's not just the clocks that changed

  "Retail is a mirror of society."

  Yes, Daylight Savings began a couple weeks ago. But it's not just the time on the clocks that changed; the times themselves have substantially changed. 
  
  Followers of The ROI has heard us assert many times that "Retail is a mirror of society." As we reflect on the first quarter of 2022, we are struck by how much has changed in just those three months. And retailers must adapt – yes, again! – to this rapidly changing environment.
  
  Think about it. Consider the assumptions you made just a few months ago, in late December and early January about 2022. 
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  Business Reality for Tech Startups...and You?

  Have you seen what the Silicon Valley venture capital firms are saying to the  startup firms they've invested in? 

  While it may be tempting to smile and nod approvingly at this dose of business reality, there's a ripple effect to be aware of.
  
  As reported in the May 31 edition of the Wall Street Journal*, "Their advice includes cutting costs, preserving cash, and jettisoning hopes that hedge funds or other investors will swoop in with big checks."